No. of Recommendations: 41
Just following up on this uncharacteristically bullish post of mine from exactly a year ago
...Looking at subsequent returns, today's valuation level has since the credit crunch been followed by average one year returns of about inflation + 10%.
Inflation is a bit of a wild card these days, but I'd turn that into a very reasonable expectation of low double digit nominal returns in the "roughly a year" time frame.
Might be better or worse than that, but I think the odds are 50:50 on that front.
So be of good cheer!
On this view, we are about to experience an above-average year, not a below-average one.
For the record, B shares at $342, CPI at 304.127.
So, how'd we do?
Berkshire closed at $405.77, CPI at 314.069 so headline US inflation was 3.27% in the last year
So, one year result since the post:
Nominal price gain +18.65%
Real price gain +14.89%
It has indeed been a good year.
Jim